Saehan Bancorp Reports First Quarter Results

LOS ANGELES--([ BUSINESS WIRE ])--Saehan Bancorp (OTCBB:SAEB) today reported results for its first quarter ended March 31, 2010, reflecting the continued impact of current economic conditions and a reduced net loss on a sequential quarterly basis.

The company reported a net loss of $5.9 million, or $0.10 per share for the first quarter of 2010 compared with a net loss of $73,000, or $0.01 per share, a year ago and a net loss of $23.9 million, or $1.49 per diluted share, in the fourth quarter of 2009. The return on average equity for the first quarter of 2010 was -107.7 percent and the return on average assets was -3.65 percent compared with -0.44 percent and -0.04 percent, respectively, for the first quarter of 2009.

Other highlights for the first quarter of 2010 included:

Total assets were $650.2 million compared with $913.3 million in the same period a year ago.
Net loans decreased $186.0 million from the same period a year ago.
Total deposits decreased $219.1 million, or 29.2 percent, from a year earlier.
Net interest margin was 2.94 percent, compared with 2.52 percent for the first quarter of 2009.
Efficiency ratio was 120.5 percent, compared 98.2 percent for the first quarter of 2009.
The ratio of nonperforming loans to total loans was 8.5 percent compared with 7.7 percent at March 31, 2009.
Noninterest income excluding loss on sale of OREOs was $1.1 million, compared with $1.2 million for the first quarter of 2009.
Noninterest expense was $5.3 million, compared with $5.2 million for the first quarter of 2009.

aResults for the first quarter reflect significant progress in restoring the banka�s financial position and returning our institution to profitability. The Company successfully raised $60.6 million of common stock equity in March and restored the capital ratios of its subsidiary bank to levels well above the minimum guidelines established by regulatory agencies to be awell-capitalized institutionsa said Chung H. Youk, president and chief executive officer.

He noted that management is focused on identifying problem assets and restoring the banka�s financial health in order to capitalize on future opportunities as the economic environment begins to improve.

Net interest income before provision for loan losses was $4.7 million in the first quarter of 2010 compared with $4.9 million in the same period a year ago. Net interest margin for the first quarter of 2010 was 2.94 percent compared with 2.52 percent in the first quarter a year earlier. Net interest margin improved as a result of reducing high cost deposits and improving the deposit mix. Cost of funds for the first quarter of 2010 was 1.70 percent, compared with 2.45 percent for the first quarter of 2009.

Noninterest income excluding loss on sale of OREOs in the first quarter of 2010 totaled $1.1 million, compared with $1.2 million a year ago. The reduction was primarily attributable to the $124,000 reduction in service charges on deposit accounts.

Noninterest expense for the first quarter of 2010 was $5.3 million, compared with $5.2 million for the first quarter of 2009. The slight increase in noninterest expense for the first quarter of 2010 was primarily attributable to increase in legal expenses and deposit assessment fees, partially offset by lower salary and employee benefit expenses. The efficiency ratio for the first quarter of 2010 was 120.5 percent compared with 98.2 percent in the first quarter of 2009.

Nonperforming loans were $46.7 million at March 31, 2010 -- down $8.5 million from $55.2 million at March 31, 2009. Nonperforming loans and OREO represented 8.96 percent of total assets at March 31, 2010. The provision for loan losses was $5.0 million for the first quarter of 2010 compared with $230,000 a year ago.

Total assets were $650.2 million as of March 31, 2010 -- representing a decrease of $263.1 million, or 28.8 percent, over the $913.3 million in total assets reported on March 31, 2009. Total deposits as of March 31, 2010 decreased $219.1 million, or 29.2 percent, to $530.4 million from $749.4 million as of March 31, 2009. Youk noted that management has intentionally reduced the amount of total assets and deposits in order to improve the banka�s Tier One Leverage Ratio while maintaining an adequate amount of liquidity.

Shareholdersa� equity was $60.3 million at March 31, 2010 compared with $63.0 million at March 31, 2009. Shareholdersa� equity primarily decreased as a result of net losses incurred in the last four quarters, partially offset by the $60.6 million common stock equity raised in a private placement on March 9, 2010. Capital ratios remained to be well above the aWell-Capitalizeda guidelines established by the regulatory agencies. The Leverage Ratio, Tier 1 Risk-based Capital Ratio and Total Risk-based Capital Ratio at March 31, 2010 were 12.3 percent, 14.1 percent and 15.4 percent, respectively, compared with 10.2 percent, 10.9 percent and 12.1 percent, respectively at March 31, 2009.

About Saehan Bancorp

Saehan Bancorp is a bank holding company with headquarters in Los Angeles, California. Its wholly owned subsidiary, Saehan Bank, offers a comprehensive range of financial solutions to meet the needs of multi-ethnic communities in the U.S. Saehan Bancorp is committed to satisfying customers and creating shareholder value. Its ten retail branch offices, International Department, and SBA Department of Saehan Bank focus on fulfilling these commitments to customers and shareholders.

Safe Harbor Statement

This press release may contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from the projected, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance.Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts.They often include the words abelieve,a aexpect,a aanticipate,a aintend,a aplan,a aestimate,a or words of similar meaning, or future or conditional verbs such as awill,a awould,a ashould,a acould,a or amay.a


Saehan Bancorp
Condensed Balance Sheet
(Dollars in thousands)

		March 31
		2010			2009
Assets:
	Cash & due from banks - demand		11,331			18,624
	Due from banks-interest bearing		35,502			112,930
	Federal fund sold		16,085			5,790
	Securities available-for-sale		35,717			40,686
	Loans		546,993			717,480
	Less: Allowance for loan losses		36,922			21,441
	Net loans		510,071			696,039
	Loans held for sale		-			-
	Bank premises and equipment, net		3,879			5,748
	Other assets		37,596			33,442
	Total assets		650,181			913,259

Liabilities and stockholders' equity:
	Deposits:
	Noninterest bearing demand		115,709			121,944
	Interest bearing demand and savings		52,566			133,397
	Time deposits		362,103			494,093
	Total deposits		530,378			749,434
	Jr. Subordinated debenture		20,619			20,619
	Other borrowed money		30,000			75,000
	Other liabilities		8,850			5,158
	Total liabilities		589,847			850,211
	Total stockholders' equity		60,334			63,048
	Total liabilities and stockholders' equity		650,181			913,259
	Book value per share		0.31			3.90
	Period end shares outstanding		189,097,874			16,032,429
	Nonperforming loans		46,673			55,152

	Tier I leverage ratio		12.32	%		10.22	%
	Tier 1 risk-based capital ratio		14.06	%		10.86	%
	Total risk-based capital ratio		15.38	%		12.13	%


Saehan Bancorp
Condensed Income Statement and Comprehensive Income
(Dollars in thousands except per share data)

		For the three
		months ended
		March 31
		2010			2009
Interest income:
	Interest and fees on loans		7,530			9,593
	Interest on securities		182			424
	Interest on federal funds sold		14			3
	Other interest income		23			5
	Total interest income		7,749			10,025
	Interest expense:
	Deposit		2,520			4,023
	Other		549			1,094
	Total interest expenses		3,069			5,117
	Net interest income before provision for loan losses		4,680			4,908
	Provision for loan losses		5,017			230
	Non-interest income:
	Service charges on deposit accounts		532			656
	Gain(loss) on sale of loans		-			(4	)
	Gain on sale of investment securities		32			-
	Gain (loss) on sales of OREO		(1,374	)		(790	)
	Other operating income		496			562
	Total non-interest income		(314	)		424
	Non-interest expense:
	Salaries and employee benefits		2,091			2,518
	Net occupancy and equipment expense		1,235			1,259
	Other operating expense		1,934			1,458
	Total non-interest expenses		5,260			5,235
	Income before income taxes		(5,911	)		(133	)
	Income taxes		-			(60	)
	Income before extraordinary items		(5,911	)		(73	)
	Extraordinary items, net of taxes		-			-
	Net income		(5,911	)		(73	)
	Net income per share -
	Basic	$	(0.098	)	$	(0.005	)
	Diluted	$	(0.098	)	$	(0.005	)

	Basic average common shares outstanding		60,260,265			16,032,429
	Diluted average common shares outstanding		60,260,265			16,032,429

	Charge offs		10,323			1,983
	Recoveries		191			1,037

		For the three
		months ended
		March 31
		2010			2009
	Key Operating Ratios:
	Return on average assets		-3.65	%		-0.04	%
	Return on average equity		-107.72	%		-0.44	%
	Yield on earning assets		4.86	%		5.14	%
	Cost on interest bearing liabilities		2.08	%		2.85	%
	Net interest margin		2.94	%		2.52	%
	Cost of funds		1.70	%		2.45	%
	Efficiency ratio		120.48	%		98.18	%

N@N

Saehan Bancorp Reports First Quarter Results